A limited partnership (LP) is a business entity comprising two or more partners who operate or manage a business together. The minimum number of partners for a Labuan LP is two partners i.e. one general partner and one limited partner and the maximum number of partners allowed is fifty partners.

Partners may be a corporation except for firms which are set up for professional practice, in which case it must consist of natural persons only and supplemented with professional indemnity insurance coverage.

  • General Partner
    The general partners are, in all major respects, in the same legal position. Therefore, they have management control; share the right to use partnership property; share the profits of the firm in predefined proportions; and have joint and several liabilities for the debts of the partnership.
  • Limited Partner
    Limited partners contribute capital to the partnership but do not participate in the daily operations of the company. The limited partner shall not be liable as a general partner unless the limited partner participates in the management of the LP.

Registration requirements for Labuan Limited Partnership

  • A Labuan LP is subject to the same restriction or prohibition applicable to a Labuan company under the Labuan Companies Act 1990. The general process for registering Limited Partnerships involves the following:
    • The applicant must appoint a Labuan trust company for the registration, which would conduct due diligence on the applicant. All documentation required to be submitted to The Authority must be filed through a Labuan trust company.
    • The applicant must reserve its company name. A Labuan LP shall have either the words "Limited Partnership", "Ltd.P", or "L.P" as part of its name (any other abbreviations in romanised characters are accepted by The Authority).Its own name may be in any language or characters.

Partnership Registration under Labuan Islamic Financial Services and Securities Act 2010 (LIFSSA)

Section 131 (2) of the LIFSSA Act requires that the applicant appoint a qualified person to act as a Syariah adviser for the partnership. The duties of the Syariah adviser pertain to the management and operations of the Islamic partnership to ensure compliance with Shariah principles.